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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: westpacific who wrote (44648)	11/4/2005 2:17:22 AM
From: rothbard	Respond to of 110194

sfgate.com Heesen said that venture capitalists' refusing money is a healthy trend. "If we take in too much money, the returns will suffer," he said. "In this new fund-raising environment, venture capitalists are being very disciplined and saying, 'I'm only going to raise so much money, even if it upsets my investors.' In 1999-2000, we raised a huge amount of money and have been trying to figure out since that time why we did that." Venture capitalists raised $106.6 billion spread among 636 funds in 2000, but after the dot-com crash, new VC money plunged to $3.7 billion in 2002. New investments in VC funds have been steadily increasing since then. The $11.8 billion raised so far this year indicates that 2005 is on track to beat the total of $17.5 billion raised in 2004. The amount of money flowing into buyout (purchase) and mezzanine (just before going public) funds also increased, with $22.1 billion raised by 38 funds. That was 32.5 percent more than last year's second quarter and 63.7 percent more than the first quarter of this year. The combined amount invested in venture capital, buyout and mezzanine funds was $28.2 billion, the best quarterly showing since the second quarter of 2001. About half of the money invested comes from public and private pension funds. The rest comes from banks, insurance companies, colleges and endowments. 204 Billion in cash out refinancing versus the 104 billion of the Tech Stock Crash. altassets.com Relative to last year, market participants are less enthusiastic about exit prospects, although venture capital investors are more optimistic than corporate finance managers. An oversupply of capital was seen as the greatest threat to long term private equity performance. altassets.net Q2 venture capital investment into European companies down on quarter and year 02/09/2005. Venture capital investment into European companies slowed in Q2 2005, with €735.6m invested in 203 financing rounds compared to €921.6m invested in 223 deals in the first quarter and €1,121.9m invested in 318 deals in Q2 2004, according to the European Venture Capital Report released by VentureOne and Ernst & Young. Bernanke and the banks offer the money - no one takes it? What happens? altassets.net A total of 90 per cent of private equity groups are taking less debt than banks are offering them, according to new research from Close Brothers Corporate Finance. While 74 per cent of the surveyed private equity groups expect some degree of deflation in the debt markets, over a quarter believe the shift in the debt markets over the past two years is here to stay. Mark Barrow, head of private equity coverage at Close Brothers, said, 'The traditional risk-takers, private equity funds, are now turning down what they perceive as excessively risky debt packages in favour of a level of debt that gives a company room to breathe. The buoyant debt markets have given rise to a situation where lenders are taking equity risk.